Recruited by another company in Ontario: Employee rights

What is inducement in Ontario?

In Ontario, inducement occurs when employers take documented steps to entice non-unionized workers to leave their current job and take up employment with them.

This often involves offers of better pay, benefits, or career growth opportunities.

When recruitment involves inducement, it can significantly impact the employee’s rights–especially if they are later terminated.

• Example: Mike has worked as a marketing manager for a company in Toronto for 13 years. A competitor spends two months encouraging him to come work for their business instead. After considering the competitor’s offer, Mike decides to accept and leaves his current employer.

While it can be exciting when another employer shows interest in you, there are several rights non-unionized workers in the province need to be aware of if they are “induced”.

SEE ALSO
• 50% of Canadians plan to change jobs in 2023, survey finds
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• Can I work two full-time jobs at the same time?

WATCH: Employment lawyer Lior Samfiru explains several things employees shouldn’t do before seeking legal counsel on an episode of the Employment Law Show.

You don’t have to sign a new employment contract immediately

If you decide to leave your current job to work for another company, there is a very good chance that you will be asked to sign a new employment contract.

Once you receive the new agreement, don’t accept anything until you speak with an experienced Ontario employment lawyer at Samfiru Tumarkin LLP.

Employment contracts in Ontario often take away key protections that would otherwise be available to you.

Your new boss might attempt to:

• Limit your severance package to a few weeks’ pay
• Get out of inheriting your years of service with your previous employer
• Add a clause that gives the company the ability to make significant changes to your job

It’s important to understand that employers can’t force you to sign a new agreement immediately or a few days after it was provided to you.

Our firm can review the contract and make sure that your workplace rights are properly protected.

LEARN MORE
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Non-competition and non-solicitation clauses

To prevent competitors from “poaching” their staff, it’s not uncommon for employers in Ontario to include non-competition and non-solicitation clauses in their employment contracts.

In some cases, these clauses might restrict:

• Who non-unionized employees can approach for business once they begin their new job
• The type of work non-unionized employees can perform if they leave

In addition to reviewing new employment contracts, our firm can look over your current agreement and advise you on how best to navigate the situation.

SEE ALSO
• Employment Law Show: Non-Competition and Non-Solicitation Clauses
• Employment lawyer on banning non-compete clauses

Your new boss can’t make major changes to your job

In most cases, employers in Ontario can’t make significant adjustments to a non-unionized worker’s job without their consent.

Exceptions: There are some situations where your boss might be able to modify the terms of your employment without breaching your rights:

• You signed an employment contract that gives the company permission to make changes
• Your employer gave you reasonable notice of any modifications

If you start working for a new company, and unwanted changes are made to your job shortly after, it’s very likely that you can treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance, which can be as much as 24 months’ pay.

However, you shouldn’t quit your job until an experienced Ontario employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

LEARN MORE
• Wrongful dismissal in Ontario: Your rights
• Should I negotiate my own severance package in Ontario?

Your new boss can’t pressure or force you to resign

If your new employer is encouraging you to step down, document their attempts.

Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting our firm. You might have grounds for a constructive dismissal claim.

If you were forced to resign for any reason, reach out to Samfiru Tumarkin LLP immediately.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

LEARN MORE
• Employment Law Show: How to handle a bad boss
• Employment Law Show: Facts about forced resignations
• Employment Law Show: Things your employer can’t legally do

Inducement affects your severance entitlements

Severance for non-unionized employees in Ontario can be as much as 24 months’ pay.

The compensation you are entitled to is calculated using several factors, including:

• Age
• Position at the company
• Length of service
• Ability to find new work

In the event that your new boss fires you without cause shortly after pulling you away from your previous employer, the inducement should be taken into consideration when determining your severance entitlements.

• Example: Miranda, a sales manager in Ottawa, is induced to leave her job after 15 years of service. Roughly a year after joining her new employer, she is terminated without cause. Since Miranda was induced, her new boss might have to calculate her severance based on 16 years of service — rather than one year.

As soon as you receive a severance offer, don’t sign anything before contacting an experienced employment lawyer at Samfiru Tumarkin LLP.

We can confirm that the inducement has been properly factored into your severance package and help you secure the compensation you deserve if it isn’t.

SEE ALSO
• Severance pay for provincially regulated employees
• Rights to severance for federally regulated employees
• Employment Law Show: Facts about the termination process

Lost your job? Speak to an employment lawyer

If you are fired or let go by your new boss shortly after being pulled away from your previous employer, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are legally entitled to.